IN CineEurope The conference kicks off here in Barcelona on Monday, with distribution and the show expected to be in a good mood, coming out of a series of mega-drivers in the first half of the year and heading for a lucrative second half. There is a reason to crack back and a high five, but there are also fears that all countries should continue to work together for the current good of business.
The annual gathering of owners of European theaters and Hollywood studios is held in its usual slot for the first time since the beginning of the pandemic and comes as international box office (excluding China) is about 166% higher than 2021 as of June 11 at $ 6.06 billion, according to Gower Street Analytics. Also as of June 11, the global box office (including China) is estimated at $ 11.7 billion, up 62% from the same period last year and 37% below the 2017-2019 average.
In the first part of 2022, such strikes as Warner Bros / DC were observed The BatmanDisney / Marvel’s Dr. Strange in the multiverse of madnessParamount / Skydance’s Top Gunn: Maverick and Universal / Amblin Entertainment’s Dominion of the Jurassic world. Each of them has exceeded $ 600 million worldwide, with Maverick and JWD still in the early stages. Light yearto be honest, it was a difficult start – let’s see how this develops.
Although there is a clear demand, the industry cannot live on blockbusters alone. This is one of the key issues in the minds of CEOs today, along with the link between the exhibition and distribution and the increasing scope of first-class format opportunities.
Both exhibits and distributors agree that medium-sized films and even larger films that are not based on an existing IP must exist within the ecosystem in order to thrive.
Of course, this has already been seen before the pandemic, but we hear that there is more concern about lower mid-level activity and original photos, as some audience pockets are still not coming back (think of older women). This is not sustainable, we are often told. If these films stop being made, it becomes a downward cycle.
How to fix this? In part, it is about maintaining the cozy exhibition and spreading the relationships built during the pandemic. Once awkward friends, cinemas and studios have found a new way to collaborate over the last few years – sharing ideas and data and working together to maximize the box office and bring the market back to a solid footing. Although there were experiments with windows that sometimes did not fit well into the exhibition, it is now generally accepted that films need a decent theatrical projector. It is hoped that the spirit of cooperation will continue.
What’s more, even studios fight for each other when there’s a hit. The rising tide lifts all the boats, as they say, and I constantly hear from executives that they are delighted every time the film stands out in this uncertain time.
Increasing the frequency with which movie buffs appear is also a key element. In part, this is driven by content that has been a challenge throughout the shutdown and launch of the industry it has faced in general during the pandemic years. And to a large extent, this is driven by the experience in the theater, which gives people who may have lost the habit of going to the cinema the desire to return again and again – in all demonstrations. Innovative marketing and advertising campaigns and how partners can work together will be discussed here.
And there is an opportunity for exhibitors, distributors and technology companies to increase their experience with PLF, which has boosted recent hits and helped highlight the need to watch film on the big screen, maximize cinema and film potential – and driving frequency. on visits.
Europe’s big companies are seeing growth everywhere. Examples of June 11 include the United Kingdom, which grew by 920% compared to 2021 and only 27% below the average for the three years before the pandemic. France reached 461 million dollars (+ 1014% by 2021 / -31% compared to the average for three years before the pandemic), and Germany reached 309 million dollars (+ 7736% compared to 2021 / -37% compared to the average for three years before the pandemic).
On the negative side, generally abroad and not just in Europe, inflation has held back marketing costs, while production costs have risen by about 20%. So far, Russia, which accounts for 3% -4% of the international box office (excluding China) for a normal year, is not part of the equation. There is currently nothing to be done about it. China, for its part, is worried about release dates, but is showing some recovery Dominion of the Jurassic world is approaching $ 100 million to date. In addition, Korea is returning after a difficult period, and this is something that needs to be celebrated.
Overall, there is expected to be a sense of optimism here in Barcelona. The second half of the summer and the rest of the year are ready to be strong, while there is a great anticipation for 2023. As more than one CEO has enthusiastically told us, “This business is here to stay.”